Public Burdens and Corporate Behavior (Japanese)
Striking a balance between economic growth and public burdens, such as taxes and social insurance contributions, is an urgent issue especially in Japan as it is facing rapid population aging. However, existing research regarding public burdens on corporations mainly focuses on the incidence of employer contributions. In this paper, we analyze the various effects of public burdens on corporate behavior with due consideration to the difference between social insurance contributions and corporate taxes, capital stock adjustments, and employment adjustments (regular and non-regular employees). Empirical results can be summarized as follows: (1) Corporations handle the increase of public burdens in a variety of ways, not only wage reduction. (2) The changes in social insurance contributions have a large influence on the wages and employment of regular workers. On the other hand, corporate taxes have an impact on investment and research & development (R&D). (3) There exist differences in employment adjustment between part-time, regular, and dispatched workers. (4) Corporations tend to deal with the changes in public burdens by reducing their own profits in the short run. In the medium run, however, they tend to cut employment, curb investment, or raise prices. These results show that analyzing only the incidence of employer contributions is not sufficient, and we also need to consider the various aspects of public burdens and adjustment costs to corporations.
|Date of creation:||Apr 2012|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:12010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.